Kendle’s revenues dropped 17% in the first quarter, but cost-cutting measures implemented early in the year helped the contract research organization’s Q1 net income grow 35%. First-quarter 2010 profits increased to $1.2 million, or $0.08 per diluted share, in the first quarter 2010, up from $886,000, or $0.06 per diluted share, in 2009. Net revenues totaled $90.2 million, compared with $108.1 million in Q1 2009.
Operating income was still down significantly from last year, with income for operations for the quarter at $4.3 million, compared with $8.1 million in 2009.
"While Kendle has had a particularly challenging first quarter, we saw improvement throughout the period and up until today," said chairman and CEO Candace Kendle. "Our customers would appear to be at the end of their pipeline realignments and merger-related disruptions and are settling into selection of CRO partners. Cost efficiency remains a top priority for our customers, and outsourcing is a key strategy in achieving it. We are encouraged about the latter half of 2010 and into 2011."